Optimize Your B2c Sales Process in European Union

How to create outlook signature

We have often spoken about European VAT on distance selling of goods. Today, we are speaking instead about the application of VAT to digital supplies of services to European consumers. Digital supplies of services meaning telecommunication, broadcasting, and electronic services. VAT on the supply of digital services to European consumers applies in the country where the consumer belongs. So if a German trader supplies digital services to an Italian consumers, VAT will apply in Italy. Even if VAT applies in the country where the consumer belongs, there is a very good simplification from 2015, the Mini One Stop Shop. Traders can report and pay VAT from their home country in Europe without the need to register for VAT in other jurisdictions. The Mini One Stop Shop will be extended to the distance selling of goods from 2021 from the 1st of july most likely, and this is a very welcome reform from the European E-commerce community. Another simplification if a trader carries out fewer than 10,000 euros worth of digital sales within one year in Europe, VAT will apply in the country where the trader is established. It's important to understand what does the expression electronic service means. An electronic service for VAT purposes means a service that is provided over the internet with minimum or no human intervention and that would be impossible to be supplied without information technology. Do you have any question about the application of the VAT MOSS and the extension to distant selling? If you have any question please feel free to write a post below this video and bye bye for now!